The decade 1870-1880, 18.--Trans-Mississippi development, 18.--Pacific Coast routes opened, 19.--Development of export trade in grain and beef, 20.--Trunk line rate wars, 21.--Improvements in operation, 23.--End of canal and river traffic, 24. The decade 1880-1890, 27.--Phenomenal railway expansion, 28.--Transcontinental trade, 28.--Speculation rampant, 29.--Growth of western manufactures, 30.--Rise of the Gulf ports, 31.--Canadian competition, 33.--General résumé and forecast, 34. Public land grants, 35.--Direct financial assistance, 37.--History of state aid, 39.--Federal experience with transcontinental roads, 40. CHAPTER II THE THEORY OF RAILROAD RATES Analysis of railroad expenditures, 44.--Constant v. variable outlays, 45.--Fixed charges, 46.--Official grouping of expenses, 46.--Variable expenses in each group, 51.--Peculiarities of different roads and circumstances, 56.--Periodicity of expenditures, 61.--Joint cost, 67.--Separation of passenger and freight business, 68. CHAPTER III THE THEORY OF RAILROAD RATES (_Continued_) The law of increasing returns, 71.--Applied to declining traffic, 73.--Illustrated by the panic of 1907, 75.--Peculiarly intensified on railroads, 76. Growth of mileage and traffic in the United States since 1889, 77.--Increase of earnings, 79.--Operating expenses, gross and net income, 80.--Comparison with earlier decades, 85.--Density of traffic, 86.--Increase of train loads, 88.--Limitations upon their economy, 92.--Heavier rails, 93.--Larger locomotives, 94.--Bigger cars, 95.--Net result of improvements upon efficiency and earning power, 97. The law of increasing returns due to financial rather than operating factors, 99. CHAPTER IV RATE MAKING IN PRACTICE Evolution of rate sheets, 101.--Terminal v. haulage costs, 102.--Local competition, 104.--What the traffic will bear, 107.--Trunk line rate system, 111.--Complexity of rate structure, 113.--Competition of routes, 114.--Competition of facilities, 116.--Competition of markets, 118.--Ever-widening markets, 119.--Primary and secondary market competition, 121.--Jobbing or distributive business, 124.--Flat rates, 127.--Mississippi-Missouri rate scheme, 128.--Relation between raw materials and finished products, 134.--Export rates on wheat and flour, 135.--Cattle and packing-house products, 139.--Refrigerator cars, 140.--By-products and substitution, 142.--Kansas corn and Minnesota flour, 143.--Ex-Lake grain rates, 145. CHAPTER V